Compensation Packages

Along with evaluation, compensation packages of the board and executive are also a major issue in Corporate Governance. While the compensation levels for board members are outlined in the corporation’s bylaws, the board has the power to make amendments.

Establishing and evaluating compensation packages is the job of the board’s compensation committee. It is because of its ability to determine the allocation of significant company resources that the compensation committee must be independent from undue influence by the executive or other board members.